🔒Major Hartford real estate investor faces third office building foreclosure

A Brooklyn, New York-based real estate investment firm already fighting two downtown Hartford office building foreclosures is now facing a third suit from a lender. TD Bank, in an October lawsuit, claims an affiliate of Shelbourne Global Solutions defaulted on a $2.15 million loan issued Dec. 20, 2019, and secured by the roughly 40,000-square-foot office building at 330 Main St. in Hartford. According to the bank’s complaint, filed in Hartford Superior Court, the loan matured on Dec. 20, 2024, and the Shelbourne affiliate failed to repay the principal and interest owed. Shelbourne purchased the three-story, 38-year-old building for $3.1 million in late 2019, during a period when the company was rapidly expanding its Hartford portfolio. Early this year, Shelbourne put the property up for auction with bids starting at $500,000. Shelbourne, in a statement issued Friday, acknowledged nationwide challenges in the commercial real estate market, and a lack of leasing activity in downtown Hartford, has affected some of the company's assets in the city. This "is compelling the company to reevaluate its focus and priorities in this distressed market," reads a portion of the Shelbourne statement. Shelbourne has attempted to shed some non-core assets in Hartford, including 330 Main St., the company noted. But numerous attempts to sell the property failed to achieve a sale price high enough to satisfy the lender, the company said. Discussions with the lender are ongoing, Shelbourne said. Other Shelbourne properties are in the process of "being settled and recapped," with an aim to reach resolutions in the first quarter of 2026, according to Shelbourne. Attorney Richard Weinstein, of Weinstein & Weiser, is representing Shelbourne. TD Bank’s lawsuit also names Bernard S. Bertram, a Shelbourne managing member, alleging he “unconditionally guaranteed” repayment of the loan. The bank, represented by Attorney Peter J. Royer of Halloran & Sage, is seeking foreclosure of the mortgage, possession of the property, appointment of a receiver and repayment of legal fees and any remaining debt not covered by the value of the building or proceeds from a sale. Shelbourne’s Hartford portfolio has been strained by the post-pandemic shift to remote work, which has driven up downtown office vacancies as tenants reduce their leased space. In June 2022, Wells Fargo Bank filed a foreclosure action in Hartford Superior Court against a Shelbourne affiliate over an alleged default on a $31 million mortgage tied to the 420,000-square-foot office tower at 20 Church St., known as the Stilts Building. In July 2024, Webster Bank filed a separate foreclosure suit involving another Shelbourne affiliate and the 293,639-square-foot Metro Center at 350 Church St., alleging default on a $38 million loan. Both of those cases resulted in the appointment of receivers to manage the properties. Shelbourne remains a key investor in downtown Hartford and has continued to advance development initiatives even as the company faces court battles. The company is working on a $42.6 million project to convert portions of the former Fuller Brush factory in the city’s North End into 153 apartments. In June 2023, Shelbourne announced its $4.75 million purchase of the office and retail complex at 242 Trumbull St., along with plans to convert much of the 324,000-square-foot property into apartments. Shelbourne is partnered with Lexington Partners and prominent Hartford businessman Alan Lazowski in an ongoing effort to convert a portion of that complex – fronting on Pratt Street – into dormitory space for 200 University of Connecticut students. The partners are also contemplating a joint effort to convert a 53,531-square-foot office building opposite Bushnell Park — the former LAZ Parking headquarters on Lewis Street — into a hotel.